Jillianne and Myers form Booth Corporation. Jillianne transfers property (basis of $200,000 and value of $375,000) for 100 shares in Booth Corporation. Myers transfers property (basis of $180,000 and value of $285,000) and agrees to serve as manager of Booth for one year; in return, Myers receives 100 shares in Booth. The value of Myers' services to Booth is $90,000.

If an amount is zero, enter "0".

a.Jillianne recognizes $__________________gain on the transfer. Myers has income of $____________________.

b.Booth Corporation has a basis of $____________________ in the property it acquires from Jillianne and a basis of $in the property it acquires from Myers. It has a $90,000business deductionfor the value of the services Myers renders.